Per Reuters

The consumer price index for the United States in May has resulted in 0.1% below the initially expected 4.1%. This was reportedly a two-year low annual increase.

New York's Nationwide chief economist Kathy Bostjancic gave a statement regarding the situation. It was mentioned how this would give the Fed room for them to pause increasing rates.

Bostjancic: "The moderate slowing provides the Fed room to pause its rate hikes this week... However, if economic data continues to surprise to the upside and inflation remains sticky, the door is open for another rate hike in the coming months, as soon as July."

The Labor Department were the ones that reported the smaller-than-expected CPI increase. This reflected the decrease in energy products and services costs, meaning a drop in the price of electricity and gasoline.

However, there were other corners of the economy that saw an increase, including rents and used cars and truck prices. New York's Wells Fargo senior economist Michael Pugliese gave a statement regarding potential deceleration.

Pugliese: "We expect a more noticeable deceleration in core prices in the coming months... That said, directional progress should not be confused with mission accomplished. There is a lot of ground to cover in the inflation fight, which should keep the Fed from cutting rates until 2024."

The US inflation rate reportedly hit 4% below its April's 4.9%. This came as its CPI saw a 0.1% increase from April to May, reportedly attributed to the falling gas prices, while there was a small increase in grocery and consumer goods item prices.

In October 2022, it was also reported that 47% of employees planned to retire later due to inflation affecting their retirement savings. It was noted that 44% of them said that a market crash would destroy their savings.

24% of workers found that they were also on the "wrong track for retirement."

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